Park Electrochemical Corp. (NYSE-PKE) announced that its Park Advanced Composite Materials, Inc. (“PACM”) facility, located in Waterbury, Connecticut, will be closing its operations at the end of April, 2012 after the completion of the transfer of PACM’s aerospace composite materials manufacturing activities to the Company’s Park Aerospace Technologies Corp. (“PATC”) facility located at the Newton, Kansas Airport. PACM and PATC are wholly owned subsidiaries of Park Electrochemical Corp.
This transfer of aerospace composite materials manufacturing activities from the Company’s PACM facility to its PATC facility, together with the recently completed transfer of aerospace composite parts and assemblies manufacturing activities from the Company’s Park Aerospace Structures Corp. (“PASC”) facility in Lynnwood, Washington to its PATC facility, completes the Company’s plan to concentrate and consolidate all of its North American aerospace composite materials, parts and assemblies manufacturing, development and design activities at its PATC facility located at the Newton, Kansas Airport. (PASC is a wholly owned subsidiary of Park Electrochemical Corp.) The completion of the consolidation of the Company’s aerospace composite materials, parts and assemblies manufacturing activities will eliminate the additional, and in some cases duplicative, costs which the Company has incurred in connection with the start-up of PATC and the transfer of such manufacturing activities from PACM and PASC to PATC.
After the closure of the PACM facility in Waterbury, Connecticut, Park plans to supply and fully support all existing customers of PACM from the PATC business unit in Newton, Kansas.
As the result of this closure, Park expects to record total pre-tax restructuring charges of approximately $3 million. The Company expects to record approximately half of these restructuring charges in the fourth quarter of the current fiscal year ending February 26, 2012 and to record the balance of the restructuring charges during the 2013 fiscal year. After the closure is completed, the PACM business operations will have no further impact on the consolidated financial condition or results of operations of Park Electrochemical Corp.